Roots Canada reportedly planning IPO this year

TORONTO — Iconic Canadian retailer Roots Canada has hired banks to prepare an initial public offering this year, according to people familiar with the matter.

The clothing company, known for its casual wear emblazoned with Canadian flags and beaver logos, is working with Toronto-Dominion Bank, Credit Suisse Group AG and Bank of Montreal on the share sale, the people said, asking not to be identified as the details aren’t public.

Roots could seek to raise about $200 million, they said.

In 2015, the Toronto-based company agreed to sell a majority stake to New York-based private equity firm Searchlight Capital Partners.

Founded in 1973 by Michael Budman and Don Green, Roots began with one small store in Toronto. It now has more than 200 retail stores in Canada, the U.S., China and Taiwan, selling products from athletic wear and leather bags to home furnishings, according to its website.

News of the possible public offering follows IPOs by two of Canada’s most popular retail brands, Canada Goose and Aritzia, which were sold by founding families to companies that took the brands through the IPO process.

“Some of it is demographic related,” said Ryan Bushell, vicepresident and portfolio manager at Leon Frazer and Associates Investment Counsel.

In some cases founders may be ready to retire after long decades of building the brand.

“As they age, like any other business, they look for an exit,” said Bushell, adding that the seismic changes taking place in retail are another factor.

“People are looking to get out while they can.”

Representatives for Credit Suisse, TD and Searchlight declined to comment. Roots and BMO didn’t immediately respond to requests for comment.

Roots will add its name to a list of Canadian consumer brands that have gone public this year, including food chain Freshii Inc. and the vitamin and supplement maker Jamieson Wellness Inc.